Andy Vazquez

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[Andy Vazquez @andyvazquezre]

Three days of content went out to nobody last week. Not the content. One credentials file on one laptop I couldn't reach.

Every operator owns a version of this. One manager. One lender. One tenant who's a third of the rent.

Find yours before it finds you.

[Andy Vazquez @andyvazquezre]

The returns page is the sponsor's best case. The capital call section is yours.

Ask 2 things. Is a call mandatory or optional, and what happens to my position if I pass.

[Andy Vazquez @andyvazquezre]

Before you ask a sponsor about returns, ask what happens if the deal needs more money.

The answer is in the operating agreement, past the part everybody reads, and it decides more about your downside than the projection page ever will.

[Andy Vazquez @andyvazquezre]

A rental will underperform for 3 years in total silence. There's no boss, no quarterly review, no customer who walks out.

Nobody's coming to check. That's the whole problem.

[Andy Vazquez @andyvazquezre]

Most rental owners can tell you the rent and the mortgage instantly, and nothing in between.

That isn't an investment you're managing. That's a container you're watching. A rental will underperform for 3 years in total silence.

[Andy Vazquez @andyvazquezre]

The buyer who eventually purchases your property will value it off the cap rate at that moment, not the one you paid. Most owners track their appreciation and ignore the exit cap. That number decides whether you own equity or a paper gain.

[Andy Vazquez @andyvazquezre]

You spent 6 weeks arguing over the purchase price and you've never written down a single condition under which you would sell.

Hold forever isn't a plan. It's the absence of one wearing a plan's clothes.

[Andy Vazquez @andyvazquezre]

You don't get paid what you're worth. You get paid for what you can do.

I lost 5 years learning the difference, and the market was never the one that was wrong.

[Andy Vazquez @andyvazquezre]

For about 5 years I told everybody I wouldn't work for less than $20 an hour, and I had nothing worth $20 an hour to offer anybody.

I wasn't holding out. I was waiting to be discovered, and there was nothing to discover.

[Andy Vazquez @andyvazquezre]

Ask 1 question of every model somebody hands you. What has to be true that isn't true today, and who decides it.

If the answer to the second half isn't you, you aren't underwriting. You're waiting.

[Andy Vazquez @andyvazquezre]

A deal that needs a year 2 refinance to work isn't a plan. It's a bet on an interest rate, typed into a spreadsheet until it looks like analysis.

You control the scope and the price. You don't control what rates do in 24 months.

[Andy Vazquez @andyvazquezre]

The turnover that costs you the most never shows up as a turnover. It's the tenant you should've let go 6 months ago and didn't, still there, still underpaying, still costing you every month you avoid the conversation.

[Andy Vazquez @andyvazquezre]

There's no line on your statement called turnover. Paint goes under repairs, flooring under capital, the leasing fee under management, and the empty weeks never show up at all.

Your biggest expense is the one your books aren't built to show you.

[Andy Vazquez @andyvazquezre]

Ask who pays the water bill before you trust an expense ratio. A building where tenants pay their own utilities and one where the owner eats them can show the same operating expense number and not be the same deal at all.

[Andy Vazquez @andyvazquezre]

Operating expenses divided by effective gross income. 30 seconds, any flyer.

A seller can make one line look good. Nobody can make the whole cost of running a building disappear. If that ratio is low, something isn't in it.

[Andy Vazquez @andyvazquezre]

Your tenant knows your lease better than you do. They know the grace period on the late fee, what counts as an emergency repair, and how much notice you owe before you can enter. Whoever knows the contract is the one actually running the property.

[Andy Vazquez @andyvazquezre]

Your lease is the only thing you can actually enforce, and most owners have never read theirs.

One of mine was collecting a $50 late fee. The lease said 10% of rent. That isn't a tenant problem. That's running a property off a habit instead of a document.

[Andy Vazquez @andyvazquezre]

Deals don't die from one big problem. They die in the gaps.

4 days waiting on a document is a rate lock burning and a seller deciding whether you're serious.

[Andy Vazquez @andyvazquezre]

My first deal, I had no track record and no relationships. So I answered every request from the lender and the agent inside 24 hours.

You can't manufacture experience. You can be the easiest person in the deal to work with, starting immediately.

[Andy Vazquez @andyvazquezre]

2 lines in the model, not one. The bid, and a contingency you actually intend to spend.

If the deal only works at the bid number, that isn't a budget. That's a hope.